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Two of the most common questions that I'm asked on a regular basis are: 

1. How much do I need?

2. Can I borrow my downpayment?

If you're buying a house that you plan to live in, you will need to come to the table with a minimum of 5% downpayment, plus an additional 1.5% for closing costs. Even if you're not a first time homebuyer, you can still buy your next home, with the minimum amounts required. The reason why we like to see additional savings for closing costs, is to ensure that you're actually able to follow through with your purchase agreement, while paying for legal fees, a home inspection, or any other incidental costs that come up while moving.

Its also worth mentioning, that your dreams of becoming a landlord, can still be a reality, with as little as 5% down. You could potentially consider purchasing something like a duplex, so long as you plan to live in one side, with only 5% down. Taking that even further, borrowers have the option of purchasing 3 & 4 unit properties with as little as 10% down, so long as one of the units is owner occupied. 

You CAN borrow your downpayment, however, you must be able to qualify for the new mortgage, as well as the additional loan payment for the borrowed funds. This type of downpayment is commonly referred to as "flex down" and only available through certain lenders. True 0% down mortgages, where the amount of the downpayment is included in the mortgage amount, are a thing of the past. 

Other acceptable sources of downpayment are:

-Personal savings: lenders usually require a 30 to 90 day history of the accounts you will be taking your downpayment from.

-RSP savings: you can even withdraw the funds tax free through the First Time Home Buyers Plan (FTHBP) if you are a first time buyer, or have not owned a home in the last 4 years.

-A gift from a close family member: lenders usually require a "gift letter," to show that the money is a genuine gift, not to be repaid. 

If you've been thinking about buying your first home, or moving on to your next, lets talk! I'm always available to discuss your unique situation with you.

~Kristen 

403-598-6789    

kristen.bellows@mortgagegroup.com